Human resources

 

People are at the core of delivering a Tsogo Sun experience, both front and back-of-house.

At the guest level, Tsogo Sun does not sell a system or manufacture a physical product for resale. Every aspect of the business, from the gamer's experience at the roulette wheel to the dining experience in the restaurants, to the check in and check out at the front desk, requires an interaction with people of the group. A pool of qualified, trained and talented people is required to deliver these experiences, supported by empowered management and relevant support services.

At the corporate level, the group is reliant on executives and managers who can identify and manage both risks and opportunities and implement appropriate responses. These individuals, both senior and junior, need to apply long-term thinking and avoid quick and unsustainable fixes.

In order to attract and retain the appropriate talent pool, the group needs to ensure that all aspects of the employee's experience, including but not limited to, remuneration and incentivisation, is properly structured.

Key performance indicators

  2016   2015  
Management and control (revised codes) score/employment equity (2007 codes) score 10.0/19   11.0/15  
Training spend as a % of payroll 4.5%   4.2%  
Staff resignations 10.1%   11.2%  

2016 performance

Human capital management
We believe that the sustainable growth of our group depends as much on our people as it does on our operational expertise. Our employment policies are designed to empower and develop employees, and create an environment in which each employee can perform and grow to his or her fullest potential. We also strive to attract and retain the highest calibre staff while at the same time redressing historical imbalances, where they may exist.

Job creation and employee stability
The group contributes approximately 12 800 direct jobs and approximately 22 800 combined direct and indirect jobs (including contract staff employed by third-party service providers) where our operations are situated in South Africa.

Staff resignations decreased to 10.1% (11.2% in 2015) and remains acceptable for the hospitality industry and is testimony to the favourable employee engagement and values-based leadership approach across the group.

Employee development
Training spend for the year at R123 million, which is at 5.1% of payroll, has increased from the prior year. The group spent R109 million on training and development initiatives provided to black people during the year, which is 4.5% of payroll in accordance with the BBBEE revised codes - tourism sector scorecard targets. The group's BBBEE score for skills development is 16 out of 20 within the new scorecard framework.

During the year Tsogo Sun has continued to demonstrate its commitment to investing in the education, training and development of its employees. The Tsogo Sun Academy embarked on a new strategy based on current international best practice with emphasis on addressing the basic skills of our frontline staff and to deliver a steady pipeline of management and supervisory talent throughout the business. The strategy is based on three key pillars, namely the targeted training activity, the need to grow the ability of our learners to acquire new and relevant skills and the creation of shared ownership for learning within Tsogo Sun. Specifically, there has been a renewed focus on cost efficiency, the implementation of an improved business need identification process, a targeted, focused and customised approach to talent development, and a concentration on addressing functional development needs across all levels of employees in the business.

Employee engagement
The group operates under a single engagement programme reflecting the values, culture and behaviours common to the business. livingTSOGO is simple and straightforward - from the concept of attaching values to our company name to the values themselves. Employees participate in the components designed to bring them to life including livingTSOGO World which incorporates the group's induction programme and livingTSOGO Moments which provides recognition and rewards.

The results of the employee engagement survey which was conducted during the prior year were communicated throughout the business and action plans were formulated. The business continues with the implementation of the action plans to deal with the issues raised in the survey that required attention and to build on those areas which reflected positively. During the year, a livingTSOGO ambassador for 2015 was recognised in terms of the employee rewards programme which continues with ongoing monthly recognition of employees across all properties.

Employee wellness
Tsogo Sun is committed to the wellness of our employees and provides services to them through employee clinics in Tsogo Sun gaming, an employee assistance helpline, wellness days and executive medicals. During the year, a total of 51 200 primary healthcare consultations were provided at employee clinics located at our casino complexes and this has contributed positively to the management of absenteeism within the group. Meals are also provided to our employees in canteens at our hotels and casinos.

As part of the wellness programme, HIV/Aids has been a focus area for many years through awareness campaigns, voluntary testing, counselling and clinical management, which has positively contributed to a lower prevalence rate than anticipated.

Health and safety
The gaming and hospitality industries are safe environments relative to many other industries. Tsogo Sun properties undergo rigorous safety inspections as part of the Organisational Resilience Management Standard audit process, and deviations from the agreed standards, as well as incidents and events, are reported and resolved.

No employee fatalities as a result of health and safety incidents occurred at any of our properties. The group maintained an average lost-time injury frequency rate of 2.2. This equates to the number of injuries which rendered an employee unfit for duty for one shift or longer per 200 000 hours worked.

Employment equity
The principles of empowerment and diversity are entrenched into the ethos of Tsogo Sun. The table below reflects our employment equity and includes South Africa only. It excludes the approximately 10 000 contract staff employed by third-party service providers and 1 608 staff employed outside South Africa:

  South African male   South African female   Foreign nationals    
Employees African   Indian   Coloured   White   African   Indian   Coloured   White   Male   Female   Total
Permanent 3 138   496   361   591 3 180   373   452   576 76   36   9 279
Executives and Management 399   180   95   394   323   105   92   326   30   12   1 956
Supervisors and skilled employees 1 273   198   145   133   1 176   181   206   209   28   17   3 566
Other employees 1 466   118   121   64   1 681   87   154   41   18   7   3 757
Operational support 1 269   31   74   30 1 803   51   117   41 35   17   3 468
Executives and Management   1     9       2   6   1     19
Supervisors and skilled employees 550   14   21   14   752   30   40   27   13   10   1 471
Other employees 719   16   53   7   1 051   21   75   8   21   7   1 978
Total 2016 4 407   527   435   621 4 983   424   569   617 111   53   12 747
Total 2015 4 424   548   466   638 4 988   415   578   676 70   44   12 847

Permanent employees work full time or on a flexible roster basis according to business levels and are guaranteed a minimum number of hours work per month. Operational support staff generally work on a flexible roster basis according to business levels and have no guaranteed hours.

There have been no significant changes to the group's headcount since last year and the percentage of female employees remains unchanged at 52% of the workforce in 2016.

We ensure that our workforce reflects our focused employment equity philosophy. In this regard, in accordance with our verified management and control results, presently black representation at senior management level is 25.2%, at middle management level it is 52.8% and at junior management level it is 77.5%. The representation of black employees throughout the group is currently 89.9%. While actual representation has not decreased, the group's figures are now calculated using the revised BBBEE codes formulas, which no longer provide recognition for gender as the previous 2007 codes prescribed, thereby producing results that are not directly comparable to those from the prior year.

The main challenges in employment equity remain in the areas of executive, senior management and black disabled employees. The Tsogo Sun Academy assists in facilitating and fast tracking the development of our employees' skills, enabling our development pipeline.

Unions
Tsogo Sun recognises the right to freedom of association of employees and we recognise that collective bargaining forms an integral part of labour relations. The group has recognition agreements with six unions in South Africa and 2 402 (26%) of our permanent employees are union members. There has been a 1pp reduction in union membership from the 2 468 (27%) members in the prior year.

We endeavour to maintain transparent and constructive relations with our employees and to encourage a culture of engagement within the business. In addition, the consistent approach we have applied to determining annual increases over many years, including during times of economic downturn, has resulted in a low level of industrial action over the past decade.

Looking ahead

Employee development
The Tsogo Sun Academy will continue to build a productive learning culture within the business in the coming year, with the objective of underpinning Tsogo Sun's vision of creating great experiences for our guests. In particular, an integrated online learning platform will be rolled out to improve the reach to our employee base and the concept of ‘just in time' learning will be implemented in order to unlock further efficiencies and the effectiveness of our learning and development initiatives.

Employee engagement
The focus during the year will remain on the employee rewards programme, livingTsogo Moments, which recognises employee behaviour in line with the values.

livingTsogo